Alibaba’s AliExpress could face a hefty fine after the European Commission on Thursday opened an investigation into dissemination of potentially illegal and pornographic materials, the third such probe after social media platform X and TikTok.

The move comes under powers granted to the EU executive from the Digital Services Act which requires companies to do more to tackle illegal and harmful products on their platforms and followed a request for information sent to AliExpress last November.

Commission officials told reporters they were concerned about the potential dissemination of illegal products such as fake medicines, non-compliant food, and ineffective dietary supplements on AliExpress

They are also looking into possible hidden links where non-compliant products can be sold in a way that is not transparent to users and the role of influencers in this matter.

“We have not found yet at this stage that AliExpress is not compliant. We are simply suspecting we have elements that they are not compliant with. This is not a finding of a breach,” one of the officials said.

AliExpress said it respected all applicable rules and regulations in the markets where it operates.

“We have been working with, and will continue to work with, the relevant authorities on making sure we comply with applicable standards and will continue to ensure that we will be able to meet the requirements of the DSA,” the company said

“AliExpress is committed to creating a safe and compliant marketplace for all consumers.”

So-called VLOPs like AliExpress - or very large online platforms - are companies with more than 45 million users in Europe that are subject to the toughest DSA rules. Violations can lead to fines of up to 6 percent of global annual turnover.

The Commission on Thursday also sent requests for information to Microsoft’s Bing, Google Search, Meta Platforms’ Facebook, Instagram, Snapchat, ByteDance’s TikTok and Elon Musk’s X over their use of generative artificial intelligence.

Commission officials said they want to know whether the companies conduct risk assessments and have risk mitigation measures to tackle potentially harmful generative AI content.

“We are of course concerned with the harmful category, whether it is deep fake news or election-relevant deep fakes that seek to manipulate the public environment,” the officials said.

The companies have until April 3 to reply to questions related to the protection of elections and April 24 on other matters.

The growing popularity of generative AI systems such as Microsoft-backed OpenAI’s ChatGPT and Google’s chatbot Gemini has fuelled concerns about misinformation and fake news.

The Commission also sent a request for information to Microsoft’s Linkedin over the potential use of personal data for targeted advertising following a complaint from civil society organisations, giving it an April 5 deadline to respond.

The probes into X and TikTok are ongoing.

By Foo Yun Chee; Editing by Nick Macfie and Mark Potter

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AliExpress Russia Acquires Majority Stake in KazanExpress Marketplace

AliExpress Russia has acquired a controlling stake of 50.1 percent in KazanExpress, one of the fastest-growing marketplaces in Europe, for an undisclosed sum.

Dick’s Sporting Goods Inc. reported sales that surpassed analysts’ expectations, spurred by strong demand for sports gear.

Comparable-store sales, a key retail metric, rose 2.8 percent for the quarter ended Feb. 3, much higher than the 0.8 percent predicted by Wall Street.

The retailer issued an outlook for this fiscal year that fell in line with estimates. Management expects comparable-store sales to rise 1 percent to 2 percent for the full year, with earnings in the range of $12.85 to $13.25 a share.

Chief executive officer Lauren Hobart has been streamlining operations and cutting costs at Dick’s after a period of aggressive store expansion, adding more square footage and experiential spaces in its retail network.

Shares rose as much as 5.5 percent in premarket trading in New York on Thursday. The stock is up nearly 28 percent this year through Wednesday’s close, outpacing the 8 percent rise of the S&P MidCap 400 consumer-discretionary index.

By Kim Bhasin

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Dick’s Sporting Goods Claims Retail Theft Lowered Profits

The surge in retail theft since the Covid-19 pandemic has spread from pharmacies like CVS and Walgreens to big-box stores like Target, and now to sporting retailer Dick’s Sporting Goods.

US retail sales rebounded in February, driven by increases at auto dealerships and gasoline service stations, but consumer spending is slowing as households grapple with inflation and higher borrowing costs.

Retail sales rose 0.6 percent last month, the Commerce Department’s Census Bureau said on Thursday. Data for January was revised lower to show sales tumbling 1.1 percent instead of 0.8 percent as previously reported. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, rising 0.8 percent in February.

Sales were held down in January in part by frigid temperatures and difficulties adjusting the data for seasonal fluctuations. With those factors largely out of the way, sales are reverting to a more normal pattern.

Retail sales excluding automobiles, gasoline, building materials and food services were unchanged in February.

This so-called core retail sales measure corresponds most closely with the consumer spending component of gross domestic product. Core sales for January were revised to show them decreasing 0.3 percent instead of 0.4 percent as previously reported.

Consumer spending is cooling in the first quarter after helping to fuel economic growth in the October-December quarter. Spending, however, remains supported by a fairly tight labour market. Economists see no imminent recession.

The Atlanta Federal Reserve is forecasting GDP increasing at a 2.5 percent annualised rate in the first quarter. The economy grew at a 3.2 percent pace in the fourth quarter.

Consumer spending is holding up despite higher inflation, though households are increasingly focusing on essentials and cutting back on discretionary spending. The Federal Reserve has raised interest rates by 525 basis points to the current 5.25 percent to 5.50 percent range since March 2022. The US central bank is expected to start cutting rates by June.

A separate report from the Labour Department on Thursday showed initial claims for state unemployment benefits fell 1,000 to a seasonally adjusted 209,000 for the week ended March 9. Economists had forecast 218,000 claims in the latest week.

The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased 17,000 to 1.811 million during the week ending March 2.

The government revised the data for both initial and continuing claims from 2019 through 2023. It also implemented new models to seasonally adjust both initial claims and continued claims this year and the revised seasonal factors for both series from 2019 through 2023.

By Lucia Mutikani; Editing by Chizu Nomiyama

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US Retail Sales Drop by Most in Nearly a Year After Holidays

The value of retail purchases, unadjusted for inflation, decreased 0.8 percent from December after a downward revision to the prior month, Commerce Department data showed Thursday. The drop was the biggest in nearly a year.

Naomi Campbell has said she feels “overwhelmed and stressed out,” as tickets go on sale for an exhibition in her honour.

The leading lady of Naomi: in Fashion, which opens at the V&A in June, told a press briefing she feels “extra pressure, because everyone expects a great show from me.”

Tristram Hunt, the director of the museum, described the show as “foregrounding the voice and perspective of one of the foremost figures of popular culture.” The sales pitch of “Naomi” is that a ticket will buy an insider glimpse into the model’s life, with dresses from her own wardrobe accompanied by explanatory captions written in the first person.

A media briefing set a ritzy tone, held over a smoked salmon brunch at the Dorchester hotel in London. Campbell, who arrived 90 minutes late, said in an emotional speech that she wanted the show to be a tribute to “everyone who has been good to me.” From the audience, Sarah Burton, the former Alexander McQueen designer, brought a box of tissues to a tearful Campbell.

The V&A is staging the show, the fashion label Boss is sponsoring it – but this is very much The Naomi Show. The secret of what Hunt called her “frankly unequalled 40-year career” is that Campbell’s physical beauty is matched by her extraordinary force of personality. The message she would like audiences to take away from the show, Campbell said, is “to never judge a book by its cover.”

The curator, Sonnet Stanfill, confirmed that Campbell had been a hands-on collaborator. “It’s not for us to tell Naomi’s story, we want her to tell her story. We want our visitor to hear her voice.”

Dresses made for Campbell by Azzedine Alaïa and Valentino will be on display alongside the platform shoes in which Campbell tumbled at the Vivienne Westwood show, with the inscription “Naomi” written in blue ballpoint pen by a backstage dresser. Also on show will be a Dolce & Gabbana evening gown worn by Campbell on the last day of a period of court-ordered community service.

In a week when racist and misogynist comments made about Diane Abbott by a leading Tory donor have made headlines, the film-maker Steve McQueen, who attended the briefing, noted that it was important for a cultural institution to honour the contribution of a black woman in British society.

Campbell said while progress in diversity of representation had been made in fashion, “we are at a point where the question is, will the progress be sustained? When I look at the catwalk collections now, I get nervous that we are sliding back. I stay doing what I do because my work is not done.”

The championing of diversity, which Stanfill said has “underpinned Campbell’s entire career,” will be illustrated with a spotlight on the Black Girls Coalition she formed in 1989, and with clothes by designers for whom she advocated, such as the Lagos-based Kenneth Ize, who credits Campbell with securing him a spot on the Paris fashion week calendar.

The custom-made mannequin which will display dresses in the show was designed in collaboration with Campbell, with a golden-bronze finish that “looks like a design colour, not like skin. We felt it would not be the right direction for us to simulate a skin colour”, said Stanfill.

The exhibition is scheduled to open to visitors on 22 June. Rumours that it is running late are believed to be unfounded.

By Jess Cartner-Morley

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Naomi Campbell on Cultivating Inclusivity

The British supermodel is teaching a MasterClass on modelling fundamentals for the streaming platform. The lessons will focus on basics like how to pose and develop a signature walk but will also delve into her journey as Black model with many firsts.

Apparel maker Under Armour said on Wednesday that founder Kevin Plank will return to the company as CEO, effective April 1.

The company’s shares rose 6 percent to $8.26 after the bell.

Plank founded Under Armour in 1996 and served as the company’s top boss till 2019. In January 2020, Plank was appointed as the company’s executive chair and brand chief.

Under Armour said Plank would succeed Stephanie Linnartz, who will step down as president, CEO and member of the board.

By Arunima Kumar; Editing by Alan Barona and Shounak Dasgupta

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Under Armour Cuts Revenue Forecast on North America Concerns

The athletic-goods maker sees revenue falling 2 percent to 4 percent, down from the previous view of flat to up slightly, but maintained its profit guidance of 47 cents to 51 cents a share thanks to the strength of its second-quarter earnings.